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UTV Media PLC (UTV)

Tuesday 31 August, 2010

UTV Media PLC

Half-yearly Report

UTV Media plc
Interim Report
For the 6 months ended 30 June 2010
Financial highlights on continuing operations
* Group revenue up by 9% to £59.2m (2009: £54.4m)
* Group operating profit including associates, up by 9% to £12.2m (2009: £
11.2m)
* Pre-tax profits up by 17% to £9.4m (2009: £8.0m)
* £18.4m reduction in net debt over 12 months to £77.3m (2009: £95.7m)
* Net finance costs down 10% to £2.7m (2009: £3.0m)
* Diluted adjusted earnings per share up by 16% to 7.36p (2009: 6.32p)
* Proposed interim dividend of 1.00p (2009: Nil)
Operational highlights and prospects
* Continuing strong audience delivery across both Radio and Television
* GB Radio and Television revenue, strengthened by the World Cup, experienced
strong growth in the first six months
* The decline in Irish Radio revenue has been arrested, with growth of 3%
anticipated in the third quarter
* Radio GB benefited from the inclusion of Sport magazine, which was acquired
in May 2009, and complements the strong sports-led offering to advertisers
* Advertising revenue in talkSPORT in the second half of the year is expected
to benefit from the two significant rights packages obtained for the
Premier League
* Greater operational flexibility has been facilitated by the renegotiation
of key banking covenants at better than market interest rates
John McCann, Group Chief Executive, UTV Media plc, said:
"The first six months of 2010 saw a better trading performance due to the
improving economic environment and the stimulus of the World Cup and this
improvement in trading appears to be continuing in the third quarter."
For further information contact:
Maitland +44 (0) 20 7379 5151
Anthony Silverman
Rowan Brown
UTV Media plc
John McCann Group Chief Executive +44 (0) 28 9026 2202
Norman McKeown Group Finance Director +44 (0) 28 9026 2098
Orla McKibbin Head of Communications +44 (0) 28 9026 2188
Chairman's Statement
Introduction
The improving economic environment and the stimulus of the World Cup
underpinned a better trading performance in the first six months. Consequently,
profit before tax increased by 17% to £9.4m (2009: £8.0m) which, coupled with
strong cash management, drove net debt down to £77.3m, some £18.4m less than at
30 June 2009.
Results and Dividend
In the first six months of 2010 group turnover from continuing operations
increased by 9% to £59.2m (2009: £54.4m). Group operating profit, including
associates, was up by 9% to £12.2m (2009: £11.2m), driven primarily by a strong
performance in our radio divisions, where operating profit improved by 17% to £
9.8m (2009: £8.4m). Television operating profit was lower at £1.4m (2009: £
1.8m) while new media maintained its operating profit at £1.0m (2009: £1.0m).
Lower net interest costs of £2.7m (2009: £3.0m) helped lift pre-tax profits to
£9.4m (2009: £8.0 m). Post tax profits on continuing operations of £7.2m (2009:
£6.2m) delivered a 16% improvement in diluted adjusted earnings per share of
7.36p (2009: 6.32p).
Against the background of an improved trading performance, your Board has
re-instated an interim dividend, declared at 1.00p (2009: Nil) which will be
paid on 15 October 2010 to all shareholders on the Register at the close of
business on 17 September 2010.
Radio
Our GB radio division performed strongly in the first half with turnover up by
22% to £25.1m (2009: £20.6m). Within this, the World Cup helped to lift revenue
at talkSPORT by 23% to £12.6m (2009: £10.2m) while local radio revenue was
unchanged at £10.3m (2009: £10.3m). Even after accounting for the significant
additional costs associated with the World Cup, talkSPORT's operating profit
increased by 48% to £3.9m (2009: £2.7m) while operating profit at our local
radio stations decreased marginally to £2.2m (2009: £2.3m). The turnaround at
Sport Magazine, which we acquired for a nominal sum in May 2009, was creditable
with the previously loss-making magazine recording an operating profit of £0.5m
on revenue of £2.2m. Overall, our GB radio division recorded a 38% increase in
operating profit to £6.6m (2009: £4.8m).
The performance of our Irish radio division continued to be impacted by the
difficult economic environment but the significant decline in advertising
revenue experienced in 2009 moderated in the first six months of 2010. On a
like for like basis, revenue in the first half of this year was down by 4%,
with the month of June recording an increase of 6%. Movement in foreign
exchange brought a further 3% reduction resulting in revenue being down at £
11.5m (2009: £12.3m) for the first half. This reduction was mitigated by
additional cost savings of £0.4m resulting in an operating profit of £3.2m
(2009: £3.6m) for Irish radio.
Television
A welcome improvement in the UK airtime market in the first quarter of 2010 was
not matched in the Irish marketplace but the second quarter brought growth in
both the UK and Ireland. With the additional stimulus of the World Cup,
television advertising revenue was up by 7% to £15.0m (2009: £14.0m) in the six
months to 30 June 2010. In this period, total television revenue was £17.0m
(2009: £15.5m). Additional network programme costs, primarily in respect of the
World Cup, and higher commission and bonus payments more than offset the
improvement in revenue, resulting in a lower television operating profit of £
1.4m (2009: £1.8m).
New Media
Revenue in our new media division reduced slightly to £5.6m (2009: £5.9m) but
this was offset by a £0.3m reduction in costs. Consequently, new media
maintained an operating profit of £1.0m for the six months to 30 June 2010.
Net Debt
Following on from a £19.1m reduction in net debt in 2009, we further reduced
debt by £11.2m in the first six months of 2010. Improved profitability and a
tight focus on the management of working capital provided the cash generation
to help reduce net debt to £77.3m at 30 June 2010 (2009: £95.7m).
In order to provide additional operational flexibility the Group accepted an
offer from its banking consortium to ease the terms of its key banking
covenants for a margin increase. The new covenants are effective from 1 April
2010 until the facilities expire in June 2013.
Prospects
The fragility of economic recovery warrants caution in any forward looking
statements. Nevertheless, the improvement in trading this year is evident and
this is continuing into the third quarter of 2010.
Total revenue in our GB radio division is expected to be up by 10% in the third
quarter. Within this our national radio station, talkSPORT, is expected to
increase its revenue by 15% in the three months to 30 September and the
acquisition of two significant rights packages for Premier League coverage,
while adding to costs, should drive both audience and revenue growth. Recovery
at our local radio operations is lagging this and in the third quarter, revenue
is expected to be down by 5%. The transformation of Sport magazine's fortunes
has continued into the third quarter, raising expectations that its success in
the first half of the year can be replicated in the second half, even in the
absence of World Cup activity.
After a very difficult period, our Irish radio stations are experiencing an
improving trend. Strong audience delivery is driving the success of our unique
Urban Access offering to advertisers, even in a weak market, and we would
expect our Irish radio advertising revenue to show a 3% improvement in the
three months to 30 September 2010.
Recovery in our Irish television advertising revenue had also lagged the UK
market but again, the improving trend has gradually brought this part of our
revenue back into positive territory. We forecast that our total television
advertising revenue will be up by 15% in the third quarter of this year.
Our new media division operates in a highly competitive consumer marketplace.
Nevertheless, while pricing pressures may hamper revenue growth, our continued
focus on cost control should enhance margins and maintain operating profit in
the three months to 30 September 2010.
In last year's Interim Results I wrote that the UTV group was "well positioned
for the upturn when this current unpredictable period comes to an end". While
it could not yet be said that the unpredictable period is at an end, it is fair
to say that much of the difficult work to prepare the group for the recession
is bearing fruit. As ever, a sustained recovery in the wider economy is the
pre-requisite to ensuring that the group can take full advantage of its strong
position in the markets in which it operates.
John B McGuckian
Chairman
31 August 2010
Group Income Statement
for the six months ended 30 June 2010
Results Results
before before
Exceptional Exceptional Exceptional Exceptional
Items Items Total Items Items Total
30 30 30 30 30 30
June June June June June June
Notes 2010 2010 2010 2009 2009 2009
£000 £000 £000 £000 £000 £000
Continuing
operations
Revenue 3 59,169 - 59,169 54,365 - 54,365
Operating costs (47,107) - (47,107) (43,302) - (43,302)
---------- ---------- ---------- ---------- ---------- ----------
Operating profit 3 12,062 - 12,062 11,063 - 11,063
from continuing
operations before
tax and finance
costs
Share of results 151 - 151 143 - 143
of associates
accounted for
using the equity
method
---------- ---------- ---------- ---------- ---------- ----------
Profit from 12,213 - 12,213 11,206 - 11,206
continuing
operations before
tax and finance
costs
Finance revenue 36 - 36 104 - 104
Finance costs (2,708) - (2,708) (3,071) - (3,071)
Foreign exchange (153) - (153) (244) - (244)
loss
---------- ---------- ---------- ---------- ---------- ----------
Profit from 9,388 - 9,388 7,995 - 7,995
continuing
operations before
tax
Taxation (2,159) - (2,159) (1,821) (1,500) (3,321)
---------- ---------- ---------- ---------- ---------- ----------
Profit from 7,229 - 7,229 6,174 (1,500) 4,674
continuing
operations after
tax
Discontinued operations
Loss from 6 - - - (360) - (360)
discontinued
operations
---------- ---------- ---------- ---------- ---------- ----------
7,229 - 7,229 5,814 (1,500) 4,314
----------- ----------- ----------- ----------- ----------- -----------
Attributable to:
Equity holders of 7,070 - 7,070 5,667 (1,500) 4,167
the parent
Minority interests 159 - 159 147 - 147
---------- ---------- ---------- ---------- ---------- ----------
7,229 - 7,229 5,814 (1,500) 4,314
----------- ----------- ----------- ----------- ----------- -----------
Note 2010 2009
Earnings per share
Continuing operations
Basic 8 7.41p 4.75p
Diluted 8 7.36p 4.75p
Adjusted 8 7.41p 6.32p
Diluted adjusted 8 7.36p 6.32p
------- -------
Continuing and discontinued operations
Basic 8 7.41p 4.37p
Diluted 8 7.36p 4.37p
Adjusted 8 7.41p 5.94p
Diluted adjusted 8 7.36p 5.94p
------- -------
Group Statement of Comprehensive Income
for the six months ended 30 June 2010
30 30
June June
2010 2009
£000 £000
Profit for the period 7,229 4,314
---------- -----------
Other comprehensive (expense)/income
Exchange difference on translation of (6,435) (8,850)
foreign operations
Actuarial loss on defined benefit (3,668) (5,960)
pension schemes
Cash flow hedges:
- Loss arising during the year (996) (639)
- Less transfers to the income 1,116 728
statement
Tax relating to other comprehensive 1,007 1,646
income
---------- -----------
Other comprehensive expense for the (8,976) (13,075)
period, net of tax
---------- -----------
Total comprehensive expense for the (1,747) (8,761)
period, net of tax
---------- -----------
Attributable to:
Equity holders of the parent (1,906) (8,908)
Minority interests 159 147
---------- -----------
(1,747) (8,761)
---------- -----------
Group Balance Sheet
for the six months ended 30 June 2010
Restated
30 30 31
June June December
Notes 2010 2009 2009
£000 £000 £000
ASSETS
Non-current assets
Property, plant and equipment 5 10,574 11,468 11,440
Intangible assets 251,634 256,491 261,030
Investments accounted for using the 246 258 137
equity method
Deferred tax asset 13,094 16,758 14,255
----------- ----------- -----------
275,548 284,975 286,862
----------- ----------- -----------
Current assets
Inventories 617 522 332
Trade and other receivables 32,103 28,146 32,915
Cash and short term deposits 10,434 9,864 8,434
----------- ----------- -----------
43,154 38,532 41,681
----------- ----------- -----------
TOTAL ASSETS 318,702 323,507 328,543
----------- ----------- -----------
EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent
Equity share capital 55,557 55,557 55,557
Capital redemption reserve 50 50 50
Treasury Shares (1,258) (1,258) (1,258)
Foreign currency reserve 5,997 9,796 12,432
Cash flow hedge reserve (716) (1,393) (821)
Retained earnings 66,156 54,447 63,409
----------- ----------- -----------
125,786 117,199 129,369
Minority interest 656 740 747
----------- ----------- -----------
TOTAL EQUITY 126,442 117,939 130,116
----------- ----------- -----------
Non-current liabilities
Interest bearing loans and borrowings 9 79,592 97,298 88,532
Pension liability 10 13,505 13,718 10,999
Provisions 992 1,623 1,060
Deferred tax liabilities 48,597 49,244 49,580
----------- ----------- -----------
142,686 161,883 150,171
----------- ----------- -----------
Current liabilities
Trade and other payables 38,653 31,871 36,793
Current portion of interest bearing 9 8,109 8,255 8,374
loans and borrowings
Financial liabilities 969 1,869 1,100
Tax payable 1,425 1,348 1,540
Provisions 418 342 449
----------- ----------- -----------
49,574 43,685 48,256
----------- ----------- -----------
TOTAL LIABILITIES 192,260 205,568 198,427
----------- ----------- -----------
TOTAL EQUITY AND LIABILITIES 318,702 323,507 328,543
----------- ----------- -----------
Group Cash Flow
for the six months ended 30 June 2010
30 30
June June
2010 2009
£000 £000
Operating activities
Profit before tax 9,388 7,551
Adjustments to reconcile profit before tax to net cash
flows from operating activities
Foreign exchange loss 153 244
Net finance costs 2,672 2,967
Share of results of associates (151) (143)
Depreciation of property, plant and equipment 832 887
Difference between pension contributions paid and amounts (1,164) (811)
recognised in the income statement
Increase in inventories (285) (31)
(Increase)/decrease in trade and other receivables (343) 1,610
Increase in trade and other payables 1,448 719
(Decrease)/increase in provisions (49) 642
Profit from sale of property, plant and equipment (14) (12)
Share based payments 231 -
-------- ---------
Cash generated from operations before exceptional costs 12,718 13,623
Exceptional costs (397) (1,340)
Tax received 18 120
---------- ----------
Net cash inflow from operating activities 12,339 12,403
---------- ----------
Investing activities
Interest received 30 105
Proceeds on disposal of property, plant and equipment 25 65
Purchase of property, plant and equipment (359) (1,758)
Payment to acquire investments (203) (236)
---------- ----------
Net cash flows from investing activities (507) (1,824)
---------- ----------
Financing activities
Borrowing costs (2,348) (2,905)
Dividends paid to equity holders of the parent (3) (9)
Dividends paid to minority shareholders of subsidiaries (250) -
Repayment of borrowings (7,022) (6,778)
Rights issue costs (2) (23)
---------- ----------
Net cash flows used in financing activities (9,625) (9,715)
---------- ----------
Net increase in cash and cash equivalents 2,207 864
Net foreign exchange differences (207) (280)
Cash and cash equivalents at 1 January 8,434 9,280
---------- ----------
Cash and cash equivalents at 30 June 10,434 9,864
---------- ----------
Group Statement of Changes in Equity
for the six months ended 30 June 2010
Restated
Equity Capital Foreign Cashflow Restated Share
share redemption Treasury currency hedge Retained holder Minority Restated
capital reserve shares reserve reserve earnings equity interest Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
At 1 January 55,557 50 (1,258) 18,646 (1,455) 56,475 128,015 593 128,608
2009
Total net - - - (8,850) 62 (120) (8,908) 147 (8,761)
comprehensive
income/
(expense) in
the period
Dividends - - - - - (1,908) (1,908) - (1,908)
payable to
equity
shareholders
--------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
At 30 June 2009 55,557 50 (1,258) 9,796 (1,393) 54,447 117,199 740 117,939
Total net - - - 2,636 572 8,880 12,088 317 12,405
comprehensive
income/
(expense) in
the period
Dividends paid - - - - - - - (310) (310)
to minority
shareholders
Share based - - - - - 82 82 - 82
payment
--------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
At 31 December 55,557 50 (1,258) 12,432 (821) 63,409 129,369 747 130,116
2009
Total net - - - (6,435) 105 4,424 (1,906) 159 (1,747)
comprehensive
income/
(expense) in
the period
Dividends paid - - - - - - - (250) (250)
to minority
shareholders
Share based - - - - - 231 231 - 231
payment
Dividends - - - - - (1,908) (1,908) - (1,908)
payable to
equity
shareholders
--------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
At 30 June 2010 55,557 50 (1,258) 5,997 (716) 66,156 125,786 656 126,442
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Notes to the accounts
1. Basis of preparation
The interim financial statements have been prepared in accordance with IAS34
"Interim Financial Reporting" and the Disclosure and Transparency Rules of the
Finance Services Authority.
In addition the interim financial statements have been prepared on a basis
consistent with the accounting policies set out in the Group's Annual Report
and Accounts for the year ended 31 December 2009.
Retained earnings together with trade and other payables in the comparative
Balance Sheet at 30 June 2009, and consequently the Statement of Changes in
Equity for the six month period then ended, have been restated to recognise the
final 2008 dividend paid in July 2009 of £1,908,000, but which was approved at
the Company's annual general meeting in May 2009. The Statements of
Comprehensive Income, the Cash Flow Statement and the financial position as at
1 January 2009 are unaffected.
These interim financial statements have been prepared on the going concern
basis as the directors, having considered available relevant information, have
a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future.
The interim results are unaudited but have been formally reviewed by the
auditors and their report to the Company is set out at the end of this Interim
Report. The information shown for the year ended 31 December 2009 does not
constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006 and has been extracted from the Group's 2009 Annual Report,
which has been filed with the Registrar of Companies. The report of the
auditors on the accounts contained within the Group's 2009 Annual Report was
unqualified and did not contain a statement under either Section 498(2) or
Section 498(3) of the Companies Act 2006 regarding inadequate accounting
records or a failure to obtain necessary information and explanations.
2. Seasonality and cyclicality
There is no significant seasonality or cyclicality affecting the interim
results of the operations.
3. Segmental information
The Group operates in four principal areas of activity - radio in GB, radio in
Ireland, commercial television and new media. These four principal areas of
activity also form the basis on which the Group is managed and reports are
provided to the Chief Executive and the Board. The following is an analysis of
the revenue and results for the period, analysed by reportable segment.
Revenue
Six months ended 30 June 2010
Radio GB Radio Television New Media Total
Ireland
£000 £000 £000 £000 £000
Sales to third parties 25,114 11,466 16,977 5,612 59,169
Intersegmental sales 378 663 1,089 - 2,130
---------- ----------- ----------- ----------- -----------
Total segment revenue 25,492 12,129 18,066 5,612 61,299
---------- ----------- ----------- ----------- -----------
Six months ended 30 June 2009
Radio GB Radio Television New Media Total
Ireland
£000 £000 £000 £000 £000
Sales to third parties 20,643 12,324 15,534 5,864 54,365
Intersegmental sales 464 667 806 - 1,937
---------- ----------- ----------- ----------- -----------
Total segment revenue 21,107 12,991 16,340 5,864 56,302
---------- ----------- ----------- ----------- -----------
Results
Six months ended 30 June 2010
Radio GB Radio Television New Total
Ireland Media
£000 £000 £000 £000 £000
Segment operating profit 6,493 3,190 1,350 1,029 12,062
before exceptional costs
Share of results of 151
associates
Net finance costs (2,672)
Foreign exchange loss (153)
----------
Profit before tax 9,388
----------
Six months ended 30 June 2009
Radio GB Radio Television New Total
Ireland Media
£000 £000 £000 £000 £000
Segment operating profit 4,660 3,580 1,815 1,008 11,063
before exceptional costs
Share of results of 143
associates
Net finance costs (2,967)
Foreign exchange loss (244)
----------
Profit before tax 7,995
----------
4. Discontinued operations
Discontinued operations in 2009 relate to Central FM which was sold on 8
January 2010 for a nominal sum and Valleys Radio which was closed on 30 April
2009.
5. Property, plant and equipment
During the period the Group spent £337,000 on capital additions.
6. Taxation
In 2009 the capital gains tax rate in the Republic of Ireland was revised from
22% to 25%. Accordingly the deferred tax liabilities in respect of radio
licences in the Republic of Ireland were restated to recognise the future gains
thereon at this rate. This resulted in a net exceptional charge of £1,500,000
in the comparative period.
In the emergency budget in June 2010, changes in future corporation tax rates
in the UK were proposed. As these have not yet been substantively enacted,
deferred tax has been calculated at 28% within this Interim Report. If the
proposed corporation tax rate changes were to be fully approved, the relevant
deferred tax assets and liabilities would be restated accordingly resulting in
a net exceptional credit of approximately £4,300,000.
7. Dividends
30 30
June June
2010 2009
£000 £000
Equity dividends on ordinary shares
Declared and paid during the period - -
---------- ----------
Proposed and recognised as a liability at
30 June
Final for 2009: 2.00p (2008: 2.00p) 1,908 1,908
---------- ----------
Proposed but not recognised as a liability
at 30 June
Interim for 2010: 1.00p (2009: Nil) 954 -
---------- ----------
The final dividend for 2009 was paid on 15 July 2010 (2008: 15 July 2009).
8. Earnings per share
Basic earnings per share is calculated based on the profit for the financial
period attributable to equity holders of the parent and on the weighted average
number of shares in issue during the period.
Adjusted earnings per share are calculated based on the profit for the
financial period attributable to equity holders of the parent adjusted for the
exceptional items. This calculation uses the weighted average number of shares
in issue during the period.
Diluted earnings per share are calculated based on profit for the financial
period attributable to equity holders of the parent. Diluted adjusted earnings
per share are calculated based on profit for the financial period attributable
to equity holders of the parent before exceptional items. In each case the
weighted average number of shares is adjusted to reflect the dilutive potential
of the awards expected to be vested on the Long Term Incentive Schemes.
The following reflects the income and share data used in the basic, adjusted,
diluted and diluted adjusted earnings per share calculations:
Net profit
attributable to
equity holders
2010 2009
Continuing Discontinued Total Continuing Discontinued Total
Operations Operations Operations Operations
£000 £000 £000 £000 £000 £000
Net profit 7,070 - 7,070 4,527 (360) 4,167
attributable to
equity holders
Exceptional - - - 1,500 - 1,500
items (net of
tax)
------- ------- ------ ------- ------ ------
Total adjusted 7,070 - 7,070 6,027 (360) 5,667
and diluted
profit
attributable to
equity holders
----------- ----------- --------- ----------- ----------- -----------
Weighted average number of shares
2010 2009
thousands thousands
Weighted average number of shares for basic and adjusted 95,403 95,403
earnings per share (excluding treasury shares)
Dilutive potential of the Long Term Incentive Schemes 672 -
----- -----
Adjusted weighted average number of ordinary shares for 96,075 95,403
diluted earnings per share
----------- -----------
Earnings per share
From continuing and discontinued
operations
2010 2009
Basic 7.41p 4.37p
----------- -----------
Diluted 7.36p 4.37p
----------- -----------
Adjusted 7.41p 5.94p
----------- -----------
Diluted adjusted 7.36p 5.94p
----------- -----------
From continuing operations
2010 2009
Basic 7.41p 4.75p
----------- -----------
Diluted 7.36p 4.75p
----------- -----------
Adjusted 7.41p 6.32p
----------- -----------
Diluted adjusted 7.36p 6.32p
----------- -----------
From discontinued operations
2010 2009
Basic - (0.38)p
----------- -----------
Diluted - (0.38)p
----------- -----------
Adjusted - (0.38)p
----------- -----------
Diluted adjusted - (0.38)p
----------- -----------
9. Financial liabilities
30 30 31
June June December
2010 2009 2009
£000 £000 £000
Current
Current instalments due on bank 8,109 8,255 8,374
loans
Non-current
Non-current instalments due on 79,592 97,298 88,532
bank loans
----------- ----------- -----------
Total 87,701 105,553 96,906
----------- ----------- -----------
The bank loans at 30 June 2010 are stated net of deferred financing costs
amounting to £496,000 (30 June 2009: £671,000; 31 December 2009: £594,000).
10. Pension schemes
The IAS 19 deficit at 30 June 2010 is £13,505,000 compared with a deficit of £
10,999,000 at 31 December 2009. The increase is the result of actuarial losses
both on the assets and liabilities during the period.
The assets generated lower than expected return during the period resulting in
an actuarial loss of £2,658,000.
The liabilities reflect a further increase in life expectancy for the
participating members by the inclusion of an allowance for future long term
improvements on mortality rates. The effect of this was partly offset by price
inflation falling by more than the discount rate during the period resulting in
an overall actuarial loss on the liabilities of £1,021,000.
These actuarial losses were partially offset by a payment £1,181,000 to the UTV
Scheme over and above normal funding during the period.
11. Related party transactions
The nature of related parties disclosed in the consolidated financial
statements for the Group as at and for the year ended 31 December 2009 has not
changed. There have been no significant related party transactions in the six
month period ended 30 June 2010.
Risks and uncertainties
The 2009 Annual Report sets out the most significant risk factors relating to
UTV Media plc's operations in the Company's judgement at the time of that
report. The Company does not consider that these principal risks and
uncertainties have changed. However additional risks and uncertainties not
currently known to the Company, or that the Company does not currently deem
material may also have an adverse effect on its business.
With respect to the risks and uncertainties identified within the Annual
Report, the Chairman's statement highlights those risks and uncertainties that
will have significant impact throughout 2010.
Statement of directors' responsibilities
The interim report is the responsibility of, and has been approved by, the
directors of UTV Media plc. Accordingly, the directors confirm that to the best
of their knowledge:
* the condensed set of financial statements has been prepared in accordance
with IAS 34 "Interim Financial Reporting" as adopted by the European Union;
* the interim report includes a fair review of the information required by
the Disclosure and Transparency Rules:
- DTR 4.2.7R, being an indication of important events that have occurred during
the first six months of the financial year and their impact on the condensed
set of financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the year; and
- DTR 4.2.8R, being related party transactions that have taken place in the
first six months of the current financial year and that have materially
affected the financial position or performance of the entity during that
period, and any changes in the related party transactions described in the last
annual report that could do so.
By order of the Board:
John McCann
Group Chief Executive
31 August 2010
Independent review report to UTV Media plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the 6 months ended 30 June
2010 which comprises the Group Income Statement, Group Statement of
Comprehensive Income, Group Balance Sheet, Group Statement of Changes in
Equity, Group Cash Flow Statement and the related notes 1 to 11. We have read
the other information contained in the half yearly financial report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the company in accordance with guidance contained
in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our work, for this
report, or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and Transparency
Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the 6 months ended 30 June 2010 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
Ernst & Young LLP
Belfast
31 August 2010

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